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Microsoft is said to be laying off thousands of employees. The number of affected employees is said to have reached 5% of the total employees of the company from Redmond, United States.
With a total number of employees of more than 220 thousand, it means that more than 10 thousand employees will be laid off, we were quoted as saying from The Verge, Wednesday (18/1/2023).
The layoffs are said to be carried out before their quarterly financial report, which means the layoffs could be made today, Wednesday (18/1) or tomorrow Thursday (19/1).
Bloomberg also reported that layoffs would be made in Microsoft's engineering division, and the number affected by layoffs would be far greater than the 1% reduction in employees in 2022.
Microsoft is the umpteenth technology company to make layoffs in these challenging economic times. Interestingly, these layoffs were made just a few days after they implemented new rules where employees can take unlimited leave.
Meanwhile, Microsoft employees who still have unused leave allowances will receive reimbursement in cash next April, and going forward, managers will be able to grant leave without a time limit.
Microsoft CEO Satya Nadella once mentioned the challenging economic conditions for the technology industry, which they will experience over the next two years. Nadella acknowledged that even Microsoft is not immune to changes that are happening globally, and technology companies need to make efficiency.
"The next two years will probably be the most challenging. We got a lot of acceleration during the pandemic, and there will be some normalization of that number of requests, and above all, there will be a true recession in some parts of the world," Nadella said in interview with Cnbc.